3.- Words you need. Production chain.

Basically a production chain is the steps that need to be taken in order to transform raw materials into goods which can then be used by consumers. At each step in the production chain, value is added to the product so it can be sold for a greater amount when it becomes the final product. This value is added through the addition of labour, buildings, raw materials and/or manufacturing and processing.

Primary producers are always the first stage in any chain, and the part they play is to produce the raw materials from which the final product will then be created.

The secondary stage of production is when the product itself takes shape in the hands of manufacturing companies. These companies bring together products and other raw materials to create the final product. Some companies use outside suppliers to provide components and services, i.e. they outsource more. Another word for outsource is subcontract. They subcontract the services and goods that were previously supplied in-house: within the company.

The last and final stage in each production chain is the actual selling of the product to the consumer. A retailer such as a supermarket will buy a large amount of the final product from the supplier, to then sell on to you, the consumer.

After all these production chain steps, the product then enters the distribution chain. This involves adding value to the products by transporting them to wherever the consumer requires them to be. One of the last stages in the distribution chain is actually getting the product to a store near the end consumer.

The table below illustrates this:

The chain of production

Primary stage	Secondary stage	Tertiary stage
Farmers, fishers, miners, foresters etc. growing, producing, harvesting, extracting.	Transport of raw materials. Manufacturers processing, making and constructing goods.	Transport of product, storage and other intermediary services. Distributors, retailers, e.g. shops, cafés, selling goods.

Adapted from http://www.landlearnnsw.org.au/production-chains/what-is